UPDATE 3-Fire destroys sugar warehouse at Brazil's Santos Port

lunes 20 de octubre de 2014 09:32 GYT
 

(Adds company comment; updates price)

SAO PAULO Oct 20 (Reuters) - A blaze destroyed a sugar warehouse operated by Cargill Inc and Biosev at Brazil's Santos port, the largest in Latin America, early on Monday, the third major fire at a sugar export terminal there over the last year.

Firefighters had the blaze under control in warehouse 3 and kept it from spreading to a nearby grains warehouse, according to a spokesman for Codesp, the port authority. No one was reported injured.

Shipping agent SA Commodities said the warehouse has capacity to store 110,000 tonnes of sugar, and had 50,000 tonnes of sugar at the time of the fire.

The terminal, known as TEAG sugar terminal, is a 50-50 joint venture between Cargill and Biosev, the sugar unit of Louis Dreyfus Commodities.

Cargill said in a statement that TEAG has insurance for its buildings, equipment and stocks. A spokeswoman said the companies would give more details on the damage soon.

In October 2013, local sugar trading giant Copersucar lost much of its sugar export terminal, with a capacity of 10 million tonnes, to a fire. The company said it expects to have all of that capacity back on line by April 2015. The port is in southeastern Brazil, near Sao Paulo.

Front-month ICE raw sugar futures showed no immediate reaction, trading up 0.9 percent to 16.77 cents a lb. After previous fires, futures prices quickly spiked more than 5 percent in a day.

Cargill and Copersucar, Brazil's largest sugar and ethanol trader, recently combined their sugar trading and logistics assets globally, which may help the U.S.-based commodities trader reroute some sugar exports through Copersucar's terminal.   Continuación...